Dubai is the most metropolitan city of the middle east with the cultural diversity of both the eastern and western sides. The reason why business owners considering starting their businesses in Dubai is because of the business and financial environment this city provides.
This is why the number of LLC company formations in Dubai, UAE has increased over the past years.
Let’s see what an LLC company setup in Dubai is and the process of acquiring an LLC company license in Dubai with cost and other factors.
What is an LLC company in Dubai?
An LLC company in Dubai is a limited liability company. It is a type of business entity that allows the owners to limit their personal liability for any debts or obligations incurred by the business. The liability of the limited company is limited to only the company or up to the investors or the shareholder capital of the company.
The LLC in Dubai type of corporate structure has become popular among entrepreneurs and investors who want to minimize their risk while still having access to capital and resources.
The main advantages of setting up an LLC in Dubai, UAE include limited personal liability, tax-free profits, flexibility in management and ownership structure, more protection from creditors, greater operational efficiency, and a simpler registration process than other types of businesses.
Beyond that, there are no restrictions on foreign ownership in Dubai LLCs which makes them attractive to international investors. All of these features make this type of corporate structure an attractive option for those looking to start or expand their business in the UAE.
The Dubai department of economic development (DED) is responsible for the issuance of LLC trade licenses in Dubai and the UAE. It is also in charge of categorizing the business activities that a business license can cover. LLC companies do not require minimum share capital and have an easy business model to keep your personal goods safe and secure. With flexible business structures, LLC companies offer liability protection with tax benefits.
What are the requirements for setting up an LLC company in Dubai?
Setting up a Limited Liability Company (LLC) in Dubai requires you to meet certain criteria. We have mentioned all the preliminary documents you might require for your LLC company registration. There would be some additional documents you may be asked to submit that will vary as per your business nature.
- Submit certified passport copies of all shareholders
- If you have an emirates ID, submit a copy of your residency visa
- The three options of company name for your company. Be sure, the company name you have chosen are following the name regulations of the UAE.
- NOC from your current UAE residency visa sponsor
If your shareholders are corporate entities, then you might require:
- Incorporation certificate
- Memorandum of association of the company
- Company’s board of resolution
All these documents should be notarized and attested in the UAE embassy of the relevant country.
Also, note that there must be at least two partners who can be either individuals or corporate entities. And, any business activity must be approved by the Department of Economic Development and the Dubai Chamber of Commerce & Industry.
You’ll need to appoint a minimum of two members for the Board of Directors if your LLC has more than one partner. An LLC company in Dubai should have a registered office address within the UAE and an appropriate Memorandum of Association that outlines the purpose and scope of business activities.
If all these requirements are met accurately and within the time frame allotted by the government then you can easily set up your own LLC company in Dubai.
What does an LLC company in Dubai do?
An LLC company in Dubai is a limited liability company that is registered under the laws of the United Arab Emirates (UAE).
An LLC company in Dubai can provide an attractive corporate structure that allows foreign investors to have 100% ownership while still benefiting from local expertise without hiring a UAE national in the company by sharing 51% shares of the company.
The activities covered by an LLC company in Dubai include importing, exporting, manufacturing, trading, professional services, distribution, and other commercial activities.
The company will also require to register with the Ministry of Economy and pay all applicable taxes as per regulations. LLC company is the most common type of company in the UAE mainland.
Allowing foreign investments into Dubai has helped make it one of the most successful economies in the Middle East region.
How to set up an LLC company in Dubai?
- First, you have to select a company name for your Dubai LLC Company
- Choose the right location in the right jurisdiction that matches your business plan.
- Your business activity is very important. For choosing the right business activity, you need to do market research. In this case, vigour business setup consultants can help you.
- Submit all the mentioned documents at the DED. The DED issues the license after reviewing the application.
- If asked by the DED, acquire all the additional and external approvals from different ministries based on your business activities or license type.
- After submitting the fee and application, you will get your license within one week if everything goes right and according to the regulations.
What is the cost of forming an LLC company in Dubai?
An LLC company registration in Dubai can be a complex process, and the formation cost in Dubai’s limited liability company in Dubai depends on many factors.
The cost of registering with the Dubai Department of Economic Development (DED) for your LLC business setup in Dubai can be from AED 15,000 to AED 30,000. But it will be varied depending on the activities you are planning to perform on the license.
The cost of LLC company formation in Dubai
The procedure of setting up an LLC company in Dubai can get an expensive adventure. This is because there are many steps involved. From business name registration to getting approvals and residency visa, opening a corporate account, and all other registration fees — all these factors that you really need to consider before finalizing the cost for LLC company formation in Dubai.
The cost of LLC company registration
The cost of forming an LLC company and registering could cost you around AED 27,000. Based on your license type, the fee can vary.
The cost of an investor visa for Dubai LLC Company
The cost of an investor visa for an LLC company formation in Dubai charges around AED 5,000.
The cost of an employment visa for an LLC company in Dubai
Getting an employment visa will cost you between AED 5000 to AED 6000 regardless of the business type of your license.
A minimum amount of AED 300,000 must be deposited in a local bank account before registration can be completed. Other costs include legal fees, professional fees, and notarization expenses which may vary depending on the complexities of individual cases. All in all, forming an LLC in Dubai is not cheap but it is worth it if done correctly as it can provide many advantages such as increased credibility and protection from personal liability.
Are there any types of LLC licenses in Dubai?
In Dubai, there are many types of LLC licenses available for businesses. The most common types are the Professional License, the Commercial License, and the Industrial License.
The Professional License is suitable for businesses that provide professional, consultancy or services such as lawyers and accountants.
With this business license, you can form any business enterprise in which experts work. Some common examples of professional activities are preparing services, computer graphic designing services, medical and beauty services, consultants, and security services.
The Commercial License is intended for businesses engaged in trading activities such as buying and selling products. A commercial license is for those company setups that perform different trading activities. The trading can be of goods, services, or other kinds of commodities. The permitted business activities of commercial licenses are logistics, real estate, and car rental.
While the Industrial License is designed primarily for manufacturing activities and industrial business. With this license, you can process local or imported commodities using raw materials.
If you are planning to form an LLC textile, food, paper, petroleum products, or metal equipment company in Dubai, you would require an industrial license for that.
If you are involved in agriculture, or a cultivation business and trade pesticides, install a greenhouse or offer harvesting crop services, you would require an agriculture license to form your LLC company in Dubai, UAE.
If you have a travel agency or offer tourism services such as hotel renal, camping, restaurants, cruise or boat renting, then you must get a tourism LLC company license to run a mainland business.
All LLCs must register with the Department of Economic Development in order to obtain their official license and to be able to operate legally in Dubai.
How Vigor corporate services can help you start your LLC company in Dubai?
With a highly dedicated and well-experienced team of consultants, we at Vigor corporate services can help you with LLC company formation in Dubai. By making sure that everything is going smoothly, we provide you with the utmost level of professional services.
Now, you do not have to worry about the cost of forming an LLC company in Dubai or any other matter, Vigor will help you get your LLC license in Dubai without any problem.